MOZAMBIQUE – The USAID/Mozambique PLANETA program, implemented by CrossBoundary has released the Carbon Finance Playbook to simplify the investment process for carbon projects.
This resource is part of PLANETA’s commitment to offering transaction advisory services to developers and investors while enhancing the local ecosystem’s capacity.
The goal is to support projects that maintain biodiversity, generate high-quality jobs, and bolster adaptation and resilience in the face of climate change.
This playbook focuses on elucidating carbon finance, centering on nature-based initiatives and emissions-reducing products that trade carbon credits in the voluntary carbon market.
Covering a spectrum of topics including project development cycles, carbon pricing, benefit-sharing agreements, risk assessment, investment structures, capital sources, and a comprehensive analysis of Mozambique’s carbon ecosystem and regulatory framework, it serves as a guidebook for stakeholders involved in carbon project financing.
The playbook delves into key aspects of raising capital for these initiatives. It delves into the various archetypes of carbon projects concerning cash flow and investment requirements.
Additionally, it explores carbon markets, guiding stakeholders through the evaluation of historical and projected carbon credit pricing.
The playbook also emphasizes essential principles in designing community benefit-sharing agreements crucial in land-based projects in emerging markets.
Moreover, it tackles risks inherent in carbon project development and provides strategies and tools for developers to mitigate these risks effectively.
The playbook familiarizes project developers with typical investment structures, various capital sources, and negotiation terms commonly encountered when engaging with investors.
Lastly, it concludes with an in-depth exploration of Mozambique’s carbon project development ecosystem, pinpointing potential risks and opportunities within the country.
In another development, CrossBoundary Access’ Blended Finance Model recently secured US$10 million for mini-grids from African Development Bank’s Sustainable Energy Fund for Africa (SEFA).
This investment adds to the US$25 million raised from ARCH Emerging Markets Partners Limited, Bank of America, and Microsoft Climate Innovation Fund in June last year to invest in CrossBoundary Access’ near-term pipeline of solar-powered mini-grids.
CrossBoundary Access will deploy a total of US$150 million over the next three years to bring clean energy to one million people in Africa.
The mini-grids combine solar and batteries to provide 24/7 grid-quality power to households and businesses.
This initiative will enable individual local residential and small business subscribers to access renewable electricity for the first time.
These solar-powered mini-grids will help bridge the gap by bringing clean electricity to rural areas of Africa that do not presently have access to electricity.
For all the latest packaging and printing industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook, and subscribe to our YouTube channel.
